5 Unit in the bronx deal or no deal ?

Question

Someone just offered me a deal in the bronx, I have no clue if these numbers are accurate, I will just forward exactly as I got it.

If someone can help me decipher it would be great.

Purchase Price 815K

5 Unit

Rent

1550 1533  1545  1545 1495

Yearly $92,004

Expenses

Taxes 5382 Water sewer $3000 Ins $1400 Fuel $4000 Utilities $600 Repairs $500

Total $14882

What do I make of it ?

Lawrence L. · Answer

@Tzvi Balsam I would definitely agree with Ceasar.....repeat.... run the numbers using the buy and hold calculator on the BP website to run the numbers and see if they work for your investing needs. I always put my expense numbers a little higher like the fuel definatly will be higher for a 5 unit unless everyone has control of their own heat. Question how old is the building, have you seen it, has there been any major repairs done or  need to be done.Is it located in the lower Bronx 167th st Grand concourse area down to 138 and the Concourse correct me if Im wrong 3 blocks East or West of the Concourse What is the layout is it 5 3BRs or 3 2Brs and 2 3BRs......

Happy Investing....See You At The Top

Jacqueline Pelzer · Answer

Ok that's me being basic. The other two guys delved into the actual numbers.

Tzvi Balsam · Answer

@Jacqueline Pelzer

1 legal basement apartment and then 2 floors with 2 apartments each.

Ceasar Rosas · Answer

@Tsvi Balsam

Hi Tsai,

It really depends on what you're looking for. Are you going after a certain cap rate? Are you financing, or buying all cash?

I would also get clarification on the repairs and utilities so you can have accurate numbers. You should request a Schedule E from them. Also include vacancy, in the Bronx 5-10% depending on location. Include a cap reserve and property management. This property could be a good deal based on the numbers, but there are other factors that come into play.

Hem Kumar · Answer

Well how are you funding this deal, how much are you putting as a down payment . NOI works out at approximately 6500 per month, figure your debt service and vacancy at 8% and that leaves you with cash flow . That will let you know exactly what your ROR.would be. From my numbers it looks like you are cutting it close.

5 Unit in the bronx deal or no deal ?

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